Business Studies - Exam Review

Flashcards based on Business Studies lecture notes.

What is the Prime Function of a business?

The main activity in which a business is involved.

What is the Prime Function of Nike?

To support every athlete in the world by embracing universality and providing a wide range of products to athletes of all skill levels, body types, and personal goals.

What is E-commerce?

The increasing use of the Internet and other electronic networks to conduct business transactions.

Name two benefits of E-commerce

Access to narrow market segments, access to global markets, larger product availability, reduces prices, marketing tool, level playing field, location and time independence, ease of communication, improved stakeholder relationships

Name two costs of E-commerce

High cost of developing and maintaining a website, deciding on in house or outsource, time delay, inability to feel the product, missing out on the social experience of shopping

What are the benefits of updating a Business Plan regularly?

They set overall goals of a business and the strategies to achieve them, they provide guidelines on how the business will run, are written to provide information to investors.

What is the difference between a Strategic plan and an Action plan?

A strategic plan focuses on the overall mission, while an action plan focuses on the activities to achieve it.

What is the main purpose of conducting a SWOT analysis?

Scanning the internal and external environment within the business in order for the strategic plan to be effective.

What is the main purpose of a company’s goals?

Provide direction, assist in the allocation of resources, reinforce the corporate culture, allow managers to assess performance against specific targets

What is Profit Margin and how is it calculated?

A ratio that measures the profitability of a business. It is calculated as Net Income or Profit divided by Sales.

What is a Ratio?

A mathematical comparison between two values, often derived from a company’s financial statements.

Name and explain the 3 types of Management Behaviour Theories

Autocratic: They don´t take into account others´opinions. Democratic: Does take into account other people’s ideas. Laissez-faire: The team contributes and you let them.

If a Manager networks with outsiders, their role is labeled as?

Liaison

Which type of law uses precedents to arrive at decisions?

Common Law

Name 3 issues that are covered by employment law in many different countries.

Equal employment opportunity, occupational health and safety, taxation and pay, superannuation, worker´s compensation, level entitlements, anti-discrimination, sexual harassment, dismissal

What is something that has NOT helped in the decline of Trade Unions?

The power and influence of the unions.

What are the different methods for Conflict Resolution between employees and the management in a company? Explain each of them

Conciliation/meditation: An independent and impartial third party is brought in to reconcile those involved in the dispute. Arbitration: The dispute is settled by a decision of an independent and impartial third party. Negotiation: The parties discuss the conflict with a view to coming to a mutually acceptable compromise agreement.

What would be the role of a manager in an organisation if she is interviewed on TV or radio?

Spokesperson

How can a business decrease its reliance on an unexpected departure of a major decision maker?

Have a proper succession plan in advance in case any problem like this happens.

What are the four activities involved in the Human Resource Cycle?

Acquisition, Development, Maintenance, Separation